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The first rule I teach my economics students is that when the economy fails, it's usually safe to blame the government. To paraphrase Winston Smith in 1984: If we accept that the state is the source of economic misery, "all else follows."

As a science, economics is really not that difficult because it encompasses decisions we make every day that impact our well-being and the well-being of those around us.

Of the various flavors of government interventionism in our lives, the minimum wage is perhaps the most welcomed. It appeals not only to our innate sense of “fairness” but also to our self-interest. Its allure may erroneously lead us to the conclusion that because “it is popular,” ergo “it is right.”

Hyperinflation leads to the complete breakdown in the demand for a currency, which means simply that no one wishes to hold it. Everyone wants to get rid of that kind of money as fast as possible. Prices, denominated in the hyper-inflated currency, suddenly and dramatically go through the roof. The most famous examples, although there are many others, are Germany in the early 1920s and Zimbabwe just a few years ago. German Reichsmarks and Zim dollars were printed in million and even trillion unit denominations.

One of the most common criticisms of economics is that it relies on unrealistic assumptions and abstract models of the economy. If only economists studied the real world they would know that people are not always rational, exchange is not always mutually beneficial, and that markets do not always clear. Instead the real world is full of mistakes, unequal power, and inefficiency.

A paper currency system contains the seeds of its own destruction. The temptation for the monopolist money producer to increase the money supply is almost irresistible. In such a system with a constantly increasing money supply and, as a consequence, constantly increasing prices, it does not make much sense to save in cash to purchase assets later. A better strategy, given this senario, is to go into debt to purchase assets and pay back the debts later with a devalued currency. Moreover, it makes sense to purchase assets that can later be pledged as collateral to obtain further bank loans. A paper money system leads to excessive debt.

If someone believes that only police and military should have guns, why is that person also likely to support socialized healthcare and a government-imposed minimum wage, and be unsupportive of school vouchers? In his 1987 book A Conflict of Visions: Ideological Origins of Political Struggles, economist Thomas Sowell put forth two conflicting visions of man that he believes explain many of the underlying reasons for the clustering of beliefs.

If one looks at the current paper money system and its negative social and social-political effects, the question must arise: where are the protests by the supporters and protectors of social justice? Why don’t we hear calls to protest from politicians and social commentators, from the heads of social welfare agencies and leading religious leaders, who all promote the general welfare as their mission?

Presumably, the answer is that many have only a weak understanding of the role of money in an economy with a division of labor, and for that reason, the consequences of today’s paper money system are being widely overlooked.

The economic turmoil in Venezuela has received increasing international media attention over the past few months. In September, the toilet paper shortage (which followed food shortages and electricity blackouts) resulted in the "temporary occupation" of the Paper Manufacturing Company, as armed troops were sent to ensure the "fair distribution" of available stocks. Similar action occurred a few days ago against electronics stores: President Nicolás Maduro accused electronics vendors of price-gouging, and jailed them with the warning that "this is just the start of what I'm going to do to protect the Venezuelan people."

Gary GallesNovember 22, 2013"We paid our Social Security and Medicare taxes; we earned our benefits." It is that belief among senior citizens that President Obama was pandering to when, in his second inaugural address, he claimed that those programs "strengthen us. They do not make us a nation of takers."

If Social Security and Medicare both involved people voluntarily financing their own benefits, an argument could be made for seniors' "earned benefits" view. But they have not. They have redistributed tens of trillions of dollars of wealth to themselves from those younger.

Social Security and Medicare have transferred those trillions because they have been partial Ponzi schemes.

Editor's Note: The following is adapted from Hunter Lewis's new book Crony Capitalism in America, now available in the Mises Store.

Many companies hope to send an employee into a government agency to influence regulation. How much better if the employee can actually shape government regulation to promote and sell a specific product! Monsanto seems to have accomplished this — and much more.

Michael Taylor is among a number of people with Monsanto ties who have worked in government in recent years. He worked for the Nixon and Reagan Food and Drug Administration in the 1970s, then became a lawyer representing Monsanto. In 1991, he returned to the FDA as Deputy Commissioner for Policy under George H. W. Bush, and helped secure approval for Monsanto's genetically engineered bovine (cow) growth hormone, despite it being banned in Canada, Europe, Japan, Australia, and New Zealand.